Japanese used car market is very huge and its exports also in huge numbers, Japan is the
leader of automotive industry since 80s now Japan become industry giant and very strong rival for other
brands, as we know due to inflation and high transportation cost business of old and used cars and other
vehicles are increasing world wide so in many counties that business is still show high profits margins as
its cost is comparatively very low with eye catching condition of cars and vehicles. As the depreciation in
Japan for motors and automotive sector is very high due to rapid change in technology and upgradation so
after few years mostly value of the new vehicle in Japan become very low at other hand environmental
safety laws in Japan are also very strong which make disposal of vehicle in Japan very expensive so
mostly owners of vehicle willing to out vehicles before time limit, how that process work in Japan let’s
review it.
1. How People sell it
Japanese vehicle user know time limit of vehicle depreciation very well, mostly used and old
cars or vehicle visit auction agency to sold it timely direct via owner or via dealers, at the auction
if owner willing to sell by him self they mostly hide value from bidders to get as much as he can
but inspection report of the vehicle must be fair and issued by the third party, where exporter or
agent play bids on behalf of importers from different countries, in Japan many auction firms
working on the basis of commission at other hand dealer and private agents also take part in the
trade and bidding.
2. How Export Works
Before Exporting vehicle from Japan its mandatory to prepare legal documents for it, after
packing legal matters need to book shipping slot for export, this only be possible after
cancelation of registration from government of Japan, clearance certificate of export, cleaning
and fumigation certificate to avoid harmful viruses, Vehicle inspection sheet after that exporter
can move container as per buyer or importer desire.
3. Target Market
Exporter mostly focus those countries buyer which has no left and right hand drive problem or where
right hand drive is permitted as Japanese vehicle mostly base on right hand drive, but some countries
where left hand drive mostly use and has no permission on right hand drive mostly do modification after
import because quality and options of vehicle imported from Japan, Here big name in modification is
Philippines where you can do modification right to left very easily but it doesn’t include heavy vehicles,
whereas different countries has different safety regulation such as seat belts, lamp lights, wind screen,
windows, mirrors and reflectors, further design of fuel tank, radiator, bumper, safety bags also big issue
before importing vehicle from Japan.
4. Stocking of Vehicles
Most of the big exporters from Japan avoid demand base purchasing of vehicle, they prefer to
regular floating in Japanese markets and push to addon stock to fulfill demand of customers, they
mostly prefer to work on ready to deliver basis if need anything special so they move towards
special buying otherwise they pre complete all local requirement for quick exports, they are fully
responsible for in hand or in stock vehicles condition, most of the customer or buyers use third
party inspection report use verify vehicle status before exports.
5. Export Rival
As Japanese export boosting due to quality and reliability in automotive industry they are nearly
will face new rival on same table from south Korea vehicle brands they are also making high
quality and reliable vehicle which is an alarm for Japanese manufacturer and export markets, due
to entry of south Korea where Japan claims to be the number one it will be hard for Japan to
remain in same place because south Korea focusing on the Japanese brands faults and problems
to make vehicle more perfectly to boost Korean exports worldwide. As this is technological era
not same as old competition and also not easy for Japan as well, this is a new war of quality and
survival now Japanese brand need to change strategy because many brand now only noting
failure and problems to get more stronger, Japanese manufacturer need to do smart and quick
research and development before it’s too late to cover as Korean brand pushing best to be
number one with full accelerations in the improvement on daily basis as per automotive
industrial reports.
Improvements means in all areas specially in user interference, mostly in this era smart cell
phone and other smart devices changed everything so now every person or user demanding
options in on touch same as in personal devices so within automotive industry who ever open
user desired experience become market leader of new era now technology adaptation and shift is
the core game how much vehicle satisfy user this only matters, some of other valuable addon
also possible like, accidental alerts to family members, vehicle stolen or misplace alerts, security
lock with personalization, solar energy power backup, external damage pre alert and many
others.
In light of the current market study this business is not only for Japan now market become more
active and ready to hit Japan exports, Either Japan needs to more focus on after sales issues or
need complete transformation of old issues which could be competitive advantage for other
countries who are ready to break Japan exports. It’s not too late if Japan revise depreciation
policy and end it little bit earlier so user can enjoy more fresh and clean cars as compare to
markets which Korea willing to cover, if Japan depreciate cars in three to four years it can boost
Japanese exports much better than before at other hand complain rate and issues will be more
minimized and controllable for Japan, that is the initial assessment based on market research for
Japan automotive industry and its future export to the world being as gold supplier.
